ASG looking at purchase of MV Pago Pago from Paramount Builders

Pago Pago, AMERICAN SAMOA — The government is working on acquiring the MV Pago Pago, following an offer of $1.2 million from the vessel’s owner, Paramount Builders Inc., to sell the vessel to ASG that can be used for — among other things — weekly service to the Manu’a island group.

The offer was outlined in a MV Pago Pago ‘Intent to Sell’ letter of Sept. 9 from Paramount Builders’ operations manager, Danny De Lara to Police Commissioner Le’i Sonny Thompson, Attorney General Mitzie Jessop-Ta’ase, Port Administrations director Taimalelagi Dr. Claire Poumele and local Homeland Security director Alfonso ‘Pete’ Galea’i.

De Lara pointed out that the MV Pago Pago owner was approached Aug. 26th to assist ASG with transportation to Manu’a. “Although, a formal agreement was not developed, our company in good faith, proceeded to conduct services for the American Samoa Government and the people of Manu’a,” according to a copy of the letter, obtained by Samoa News.

“In a conversation” with Le’i and Jessop-Ta’ase “we offered to sell the MV Pago Pago to the American Samoa Government for use of surveillance, marine patrol activities and most importantly, with the MV Manu’atele currently being repaired, provide weekly healthcare supplies and cargo for the Manu’a islands during the COVID-19 pandemic,” De Lara wrote.

According to the offer, Paramount Builders Inc., is willing to sell the MV Pago Pago to ASG for $1.2 million. Terms of this transaction include that the down payment is $250,000 and final payment is due before Nov. 1st.

“Paramount Builders will include in the sale of the vessel, the services of our marine engineer for a period of 60 days,” said De Lara. “All tools and equipment in the Engine Room will remain with the vessel.”

“We have a great love for the community in Manu’a and have proceed to serve their needs regardless of a MOU or official agreement,” according to the letter, which made no mention of local businessman Papali’i Lauli’i Alofa, owner of Paramount Builders.

Earlier this week Samoa News received information from at least three business owners claiming that ASG had already purchased the vessel for $1 million. One business owner questioned the spending of this money on “an old boat”, while there are other urgent needs such as schools and health care. Additionally, ASG already has three other boats.

ASG officials told Samoa News that the sale of the MV Pago Pago to ASG is yet to be  finalized as the government is waiting for its marine surveyor to conduct a full assessment of the vessel, which is still owned by Papali’i and Paramount Builders.

The officials also said that there was a recent meeting between the ASG team overseeing this transaction and Paramount Builders.

Besides the MV Pago Pago, the government would also be acquiring a barge that was brought here along with the vessel. And that would put the estimated total cost to ASG at $1.5 million, said ASG sources.

Gov. Lolo Matalasi Moliga first revealed the possible acquisition during a Sept. 23rd cabinet meeting saying that the vessel and barge would be a great asset for the government and it can carry three times the cargo load of the MV Manu’atele. The governor, however, didn’t provide any other details, including the funding source for the purchase.

According to the governor, the ASG owned-MV Segaula (which is smaller than the MV Manu’atele) is to be assigned — for now — to Public Safety’s Marine Patrol unit until DPS receives in April their new boat.  The Segaula, said the governor, will still be crewed by Port Administration for the time being.

The MV Manu’atele is currently undergoing repairs at a shipyard in Honolulu.